otection

901 South Stewart StreetCarson City, Nevada 89701

Dear Ms. Cripps:

I am pleased to enclose a signed copy ofthe updated delegation agreement between the Nevada Division of Environmental Protection (NDEP) and the U.S. Environmental Protection Agency which authorizes NDEP to implement the Prevention of Significant Deterioration (PSD) provisions of 40 CFR 52.21, as in effect on August 2, 2010. The agreement is effective immediately.

Please call me or have your staff contact Gerardo Rios at (415) 972-3974 or rios.gerardo@epa.gov if you have any questions.

Enclosure

Sincerely,

cc: Larry Kennedy, Chief, Bureau of Air Pollution Control, NDEP

Rob Bamford, Chief, Bureau of Air Quality Planning, NDEP

Djrector, Air Division

Printed on Rerycled Paper
I. Introduction

effect

The NDEP has adopted by reference the federal PSD regulations found in 40 CFR 52.21, as in

445B.22

on August 2, 2010. See subsectionS ofsection 1 ofLCB File No. T009-1 1: NAC 1(5). These provisions shall hereafter be referred to as the “State PSD regulations.”

IL Legal Authority

A. Pursuant to 40 CFR 52.21(u), the U. S. Environmental Protection Agency (EPA) may

the

delegate

federal

to

PSD

a State full or partial responsibility for conducting new source review pursuant to regulations found in 40 CFR 52.21.

B. As

in 40

discussed

CFR

above, the NDEP has adopted by reference the federal PSD regulations found

No. T009-1

52.21, as in effect on August 2, 2010. See subsection 5 ofsection 1 ofLCB File 1: NAC 445B.221(5).

C.

NAC

The NDEP and EPA agree that requirements in PSD permits issued under the authority of 445B.22 1(5) are federally enforceable requirements.

III. Scope of Delegation

A. Pursuant to 40 CFR 52.2 1(u), EPA hereby delegates to the NDEP full responsibility for

of

implementing

Nevada

and enforcing the federal PSD regulations for all sources located in the State

Agreement.

under NDEP jurisdiction, subject to the terms and conditions ofthis Delegation

B.

Delegation

The NDEP’s

Agreement

delegation to implement and enforce the federal PSD regulations under this

defined

does not extend to sources or activities located in Indian Country, as in 18 U.S.C.1151. Consistent with previous federal program approvals or delegations, EPA will continue to implement Nevada, the federal PSD program in Indian Country in because NDEP did not adequately demonstrate its authority over sources and activities

Indian Countiy.

located within the exterior boundaries ofIndian reservations and in other areas of

C. The EPA Administrator has delegated to the Director ofRegion 9’s Air Division, the authority

local agency

to delegate the federal PSD regulations to any State or local agency. The State or that receives delegation from EPA Region 9 does not have the authority under the federal Clean Air Act to further delegate the federal PSD regulations.

IV. Requirements

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level lower than Burea

C

B. The NDEP will ensure that there are adequate resources and trained personnel within the

Bureaus of Air Pollution Control and Air Quality Planning to implement an effective PSD

permit program. As requested, EPA will provide technical assistance related to the federal

PSD requirements, including without limitation, PSD applicability determinations, Best

Available Control Technology (BACT) determinations, air quality monitoring network

design, and modeling procedures.

C. Where the rules or policies of the NDEP are more stringent than the federal PSD

program, the NDEP may elect to include such requirements in the PSD permit along with

the EPA requirements.

D. Ifboth

a state or local regulation and

a federal regulation apply to the same source, both must

be complied with, regardless ofwhether one is more stringent than the other, subject to the

requirements ofsection 116 ofthe Clean Air Act.

E. The NDEP will follow all PSD policy, guidance, and determinations issued by EPA for

implementing the federal PSD program as provided in this Delegation Agreement. EPA willprovide the NDEP with copies of EPA policies, guidance, and determinations

through the Region

7 NSR database and/or hard copies where appropriate. Where no

current EPA policy or guidance clearly covers

a specific situation, the NDEP shall consult

with the EPA, Region 9, Air Division, Permits Office, on its proposed interpretation of the

EPA regulations.

F. The NDEP will at no time grant

a waiver to the requirements of 40 CFR 52.21 or to the

requirements of an issued PSD permit.

G. The NDEP shall consult with the appropriate State and local agency primarily responsible for

managing land use as provided in 40 CFR 52.21 (u)(2)(i) prior to making any preliminary or

final determination under this Delegation Agreement.

H. For federal PSD permits the NDEP shall:

1. Within 5 working days of receipt of

a PSD permit application, notif’ the U.S. Fish

and Wildlife Service (FWS) ofthe permit application, and provide

a copy ofthe

permit application ifrequested.

2. Notify applicants ofthe potential need for consultation between EPA and FWS ifthe

project may affect an endangered species.

3. Refrain from issuing

a final PSD permit until EPA has notified the NDEP that EPA

2
p

permits issued by the NDEP under this Delegation Agreement. For purposes of implementing the federal permit appeal provisions under this delegation, if there is a public comment requesting a change in a preliminary determination or proposed permit condition, the final permit issued by the NDEP is required to state that for federal PSD purposes and in accordance with 40 CFR 124.15 and 124.19:

1. The effective date of the permit is 30 days after service of notice to the applicant and commenters of the final decision to issue, modify, or revoke and reissue the permit, unless review is requested on the permit under 40 CFR 124.19 within the 30 day period.

2. If an appeal is made to the EAB, the effective date of the permit is suspended until such time as the appeal is resolved.

C. A PSD permit (or a portion of a PSD permit) for a change to a facility that is a major modification under the State PSD regulations but not the federal PSD regulations shall not be appealable to the EPA EAB.

D. Major modifications to existing PSD permits, except for administrative amendments, shall be processed in accordance with all ofthe substantive and procedural requirements applicable to new PSD permits.

E. Failure by the NDEP to comply with the requirements of 40 CFR part 124 related to PSD permits and this Section V. of the Delegation Agreement shall render the subject permit invalid for federal PSD purposes.

VI. EnforcementA. In all cases, EPA retains authority pursuant to sections 113 and 167 ofthe Clean Air Act with respect to sources that are subject to the federal PSD requirements, including federal PSD permits issued by the NDEP.

B. In delegated programs, the role ofthe State is that of primary enforcer or “front line” agency in program implementation. However, EPA will initiate an enforcement action, as appropriate, under the following circumstances:

1. At the State’s request;

2. If a State agency action is determined to be inadequate, or the State agency fails to carry out action in a timely or appropriate manner; and/or

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VII. EPA And NDEP Commun

A. The NDEP shall submit to EPA copies ofthe following documents, within the time frames

indicated, for sources or activities subject to this Delegation Agreement:

Action Submittal to EPA Time frame

Receipt of PSD permit application Copy of application and Within ten working days after

cover letter receipt

Completeness determination or Copy of letter to Within ten working days after

letter of deficiencies applicant signature

Transmittal to Federal Land Copy ofletter Within ten working days after

Manager (FLM) ofPSD application signature

Receipt of comments from FLM Forward comment letter Within ten working days of receipt

Preliminary determination, Copy oftechnical review, Within five working days after

proposed PSD permit, public proposed PSD permit, completion of preliminary

notice and public notice determination

Public notice ofhearing (see Copy of technical review, Within five working days after

52.21 (u)(2)(ii)) proposed PSD permit, completion of preliminary

and public notice determination

Receipt of comments from public Copy of public comment Within ten working days ofthe letter(s) close ofthe public comment

period

Final determination, PSD Copy of final Within five working days after

permit and transmittal letter determination, PSD final signature on PSD permit permit and transmittal

letter

BACT determination submittal Electronic submittal of Within 30 working days of final

to RACT/BACT/ LAER required information signature on PSD permit

Clearinghouse

B. The NDEP and EPA should communicate sufficiently to guarantee that each is fully informed and

current regarding interpretation of federal PSD regulations (including any unique questions

about PSD applicability). Any records or reports relating to PSD permitting or compliance

with PSD requirements that are provided to or otherwise obtained by the NDEP and are not

identified in the Table in Section Vll.A. above should be made available to EPA uponrequest.

C. The NDEP will ensure that all relevant source information, notifications and reports are

entered into the EPA AIRS/AFS national database system in order to meet its record keeping

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D. Correspondence from EPA to the NDEP will be sent to:

Chief, Bureau of Air Pollution Control

Nevada Division of Environmental Protection

901 South Stewart Street, Suite 4001Carson City, Nevada 89701

Correspondence from the NDEP to EPA will be sent to:

Chief, Permits Office, Air Division (AIR-3) USEPA, Region 975 Hawthorne StreetSan Francisco, CA 94105

VIII. Future EPA Regulation Revisions

A. The NDEP’s delegation to implement and enforce the federal PSD regulations does not extend to revisions to 40 CFR 52.21 that occur, or have occurred, after August 2, 2010.

B. A new request for delegation will be required for any changes to 40 CFR Part 52.21 promulgated after August 2, 2010. Implementation and enforcement of new or revised requirements after August 2, 2010 will remain the sole responsibility of EPA until this Delegation Agreement is revised.

IX. Administrative

A. This delegation agreement supersedes the previously delegated authority contained in the October 19, 2004 Delegation Agreement with the NDEP from the Director of Region 9’s Air Division.

B. If, after consultation with the NDEP, EPA makes any of the following determinations, this delegation may be revoked in whole or in part. Any such revocation shall be effective as of the date specified in a Notice ofRevocation.

1. The NDEP’s legal authority, rules and regulations, and/or procedures for implementing or enforcing the federal PSD requirements as provided in this Delegation Agreement are inadequate;

2. The NDEP is not adequately implementing or enforcing the federal PSD program; or

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Air Division and the C

exercising its enforcement authority.

D. In the event that EPA or the NDEP regulations or policies change, this delegation shall

either be amended to ensure the continued implementation of EPA’s PSD regulations or the

delegation shall be revoked.

X. Signatures

On behalf of the Environmental Protection Agency, I grant full delegation of the federal PSD

program, 40 CFR 52.21, to the NDEP pursuant to the terms and conditions of this delegation

agreement and the requirements of the Clean Air Act.

Date: /1 )I f jJ/17 %/7z

Deborah Jordan

Director, Air Division

Environmental Protection AgencyRegion 9

On behalf of the State of Nevada Division of Environmental Protection I accept full delegation ofthe

federal Prevention of Significant Deterioration program, 40 CFR 52.21, pursuant to the terms and

conditions of this delegation agreement and the requireme s oft e Cl Air Act.

Date

Colleen Cripps, Ph.D.

AdministratorNevada Division of Environmental Protection

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